S&P rates Cincinnati Bell notes B-

Standard & Poor's said it assigned B- issue-level and 6 recovery ratings to Cincinnati Bell Inc.'s proposed $400 million senior subordinated notes due 2018.

S&P affirmed the B+ corporate credit rating.

The outlook is stable.

Proceeds will be used to redeem the company's 8 3/8% senior subordinated notes due 2014 that are currently callable.

"The ratings on CBI reflect the significant competitive pressures facing its core wireline business, which contributes the majority of consolidated revenues and EBITDA," S&P analyst Naveen Sarma said in a statement.

Other risks are the company's single-market concentration, a highly leveraged financial profile and limited discretionary cash flow, Sarma added.

Tempering factors include healthy EBITDA margins at the core wireline business despite ongoing access-line erosion, a diversified product offering which provides some customer stickiness and growing contributions from its technology solutions business, the agency noted.

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